Relevance of Hyperautomation in a post COVID World

Raghuraman Ramamurthy

With things limping back to normalcy, organizations across the world are heaving a sigh of collective relief and hoping that the worst is over. Reports from consulting giants such as McKinsey and Gartner also suggest an uptick in economic activity across industries and functions. In fact, Gartner predicts that 2022 will see a evident upsurge in global IT spending – with total amount touching $4.5 trillion by the end of 2022, a 5.1% increase from last year’s figures.

This should come as no surprise. When the world had to shift gears and suddenly move into the work from home, quarantine, and Isolation mode (WFH); new concepts and technology-based protocols were developed on an adhoc basis, which saved the day.
The global pandemic accelerated the speed of digital transformation in even the most hesitant organizations and turned sceptics into believers. RPA and IPA received an unexpected impetus and have been adopted as the norm in many organizations which process huge volumes of structured and unstructured data everyday.

Hyperautomation is the inevitable future.

According to John-David Lovelock, Research VP and Distinguished Analyst for Gartner, his organization has identified three major areas of fiscal focus in 2022 for most corporations: people, data, and technology. And hyperautomation is closely connected to all these three mentioned focus areas.

Also Read: Changing Consumer Behaviour in the COVID Era : New Opportunities for Banks

With hyperautomation, organizations can process data intelligently by using the right technology- Machine Learning (ML), Optical Character Recognition (OCR), NLP and ensure that its people achieve the right work life balance which is crucial to retaining valuable human resources.

There is no better time than now to start testing the waters of hyperautomation.
With global manpower shortage that organizations are facing due to ‘The Great Resignation’, implementing hyperautomation to manage daily processes seems the wise thing to do.

Which sectors is hyperautomation most suited for?

Unstructured content is a ubiquitous challenge across industries with over 90% of businesses finding it difficult to process unstructured content. According to recent research, the volume of unstructured data is set to grow from 33 zettabytes in 2018 to 175 zettabytes, or 175 billion terabytes, by 2025. It is humanly impossible to process data of such mammoth proportions without any errors. A single error can have an avalanche effect on the entire process and cost the organization dearly.

It is this pain point that hyperautomation seeks to address with the aid of Artificial Intelligent and Robotic process automation. Any industry which involves manual and repetitive processes with unstructured data stand to benefit the most form hyperautomation. Ex. Banking, Mortgage, Hospitality industry, which involve multiple transactions everyday would benefit the most and reap quick ROI from implementing hyperautomation. It would also help enterprises in this sector to scale easily with hyperautomation solutions.

Hyperautomation MythThanks to myriads of automation processes today, efficiency has surged in the banking sector. However, the same cannot be said about the mortgage sector – it’s growing at a lethargic pace, courtesy of some archaic practices.

The entire mortgage-loan process is extremely slow and complex as many lenders even today rely on manual and paper-based procedures, adding heaps of unstructured and unverified data in this process. The everchanging federal regulations only add to the complexity. And with an increasing number of loan applications getting processed every day, things will only get more and more arduous unless the lenders automate these processes.

The technology supporting mortgage enterprises needs to offer immense flexibility to easily adapt to new legal requirements and allow for seamless and swift processing of the data.

5 Mortgage Process which need to be automated to boost growth

1. Data Collection
An automated credit origination platform. enables the prospect to enter the data, while the lender-defined rules differentiate between the ready and incomplete applications and carry the former to the next step.

2. Credit Analysis
Adopting an automated loan origination platform again allows the analyst to provide in-principle credit decisions instantaneously. i.e., the analyst can suggest a general idea on how much loan can be granted

Also Read: Importance of Financial Wellness to Employees in a Post-COVID Workforce

3. Credit Presentation
Integrating an automated credit application solution into the existing application can greatly reduce the number of manual tasks

4. Credit Decisioning
Decision-based automation will assist the risk department in pre-screening, assessing, and weighing the collateral risks, thus leading to faster processing. The automation can be done based on the policies and business rules set by the lender.

5. Monitoring of Covenants/Tickler
Automation allows recording the covenants and ticklers during the loan application process quickly to avoid unnecessary repetition.

Exceeding the expectations of the impatient customer
The new age customer who is very impatient and fickle minded is another key driver for mortgage companies to ensure that the loan processing duration is at a minimum.
Hyperautomation which is an amalgamation of AI and ML can help Banking / Mortgage enterprises to perform these functions such as Account Payables(AP), Accounts Receivables, (AR), Bank Recon, Report Generation, deftly and reduce the loan processing times by at least 80 % as well as eliminate any errors.

Apart from quickening the daily processes Hyperautomation also offers unique benefits for the Mortgage Industry. The ML component of Hyperautomation solutions can learn from previous fraud patterns and automatically detect them in future transactions. ML and AI can work together to identify unusual patterns and behaviours that humans can’t, building your business a robust fraud detection/prevention solution. This is crucial to mitigate risk and avoid of financial crimes and fraud which have become rampant in the post COVID online environment.

Enterprises who have successfully implemented Hyperautomation solutions can vouch for the ease of implementation. These low code solutions are made to make life easier for the average business user who may have little or no coding expertise. This is another endearing feature that hyperautomation solutions have which makes them an attractive option for organizations who are planning to boost their back-end operations technology.
With appreciable savings in terms of time and money, Mortgage enterprises as well as other industries can reap quick ROI and enhance their brand image due to heightened customer satisfaction.

Authored by Raghuraman Ramamurthy, Founder & CEO, Rapid Acceleration Partners.

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